AmanahRaya Halts Dealings in Three Funds as Zetrix AI Bond Exposure Draws Scrutiny

Three funds frozen as redemption pressure rises

AmanahRaya Investment Management Sdn Bhd (ARIM) has suspended all dealings in three funds with immediate effect, citing increased redemption requests and heightened credit risk involving certain investments. The October 13 announcement stops investors from withdrawing money, adding new investments or switching into or out of the affected funds.

The funds are AmanahRaya Syariah Trust Fund (ARSTF), AmanahRaya Syariah Income Fund (ARSIF) and AmanahRaya Unit Trust Fund (ARUTF). ARIM, a subsidiary of Amanah Raya Bhd, said the temporary suspension gives it time to assess liquidity and investment valuations while protecting the interests of all unitholders.

The decision comes amid scrutiny of the funds' exposure to Islamic bonds issued by Zetrix AI Bhd. Their combined holdings have been reported at more than RM500 million but less than RM600 million. Zetrix AI has lost roughly RM5 billion in market value over the past month as heavy selling reduced the stake of managing director Wong Thean Soon, also known as TS Wong.

Two distinctions matter for investors. ARIM did not name the investments responsible for the suspension in its announcement, although it separately confirmed exposure to Zetrix AI notes. It also said the suspension does not, by itself, indicate an issuer default or a realised investment loss. A restriction on access to money is serious, but it is not the same event as a borrower missing a payment.

What the suspension means for investors

The restriction covers all subscriptions, redemptions and switches, rather than withdrawals alone. Investors cannot redeem units for cash, buy additional units or move holdings into or out of the three funds while dealings remain suspended.

ARIM said the measure was taken under applicable regulatory requirements. The manager described its purpose in a statement:

This measure is intended to protect the interests of all unitholders and ensure fair and equitable treatment. It provides time to assess liquidity, review investment valuations and determine appropriate action, while reducing the need to sell assets at substantial discounts that could adversely affect the value of unitholders’ interests,

The concern is that meeting a surge in withdrawals could require the funds to sell investments at depressed prices. Those sales could lock in losses and leave investors who remain in the funds bearing the consequences. Suspending transactions gives the manager time to review that risk, although it also prevents investors from accessing money they may need.

How much Zetrix AI debt do the funds hold?

ARIM confirmed that the three funds collectively held less than 30% of Zetrix AI's bonds. Against the reported RM2 billion debt total, a 30% holding would equal RM600 million, putting the disclosed percentage below that amount. Reports place the holdings above RM500 million, but that lower bound cannot be established from the percentage statement alone.

The distinction between a share of an issuer's debt and a share of a fund's assets is essential. Holding less than 30% of Zetrix AI's bonds does not mean each fund invested less than 30% of its portfolio in the company. The total assets of the three funds, their individual allocations and the distribution of the notes between them were not disclosed.

Without those figures, investors cannot calculate how heavily each fund depends on Zetrix AI or estimate the effect of a change in the bonds' valuation on their units. The combined exposure establishes the scale of the holdings, but it does not establish a loss amount or show whether the three funds face equal pressure.

Zetrix AI launched its RM2 billion Islamic bond programme in November 2022. Its initial issuance was RM1 billion, later increased to RM2 billion in mid 2025. The proceeds were intended to support technology development involving blockchain and artificial intelligence products, as well as refinance existing debt. The notes were issued in tranches with three year maturities.

Why Wong's shrinking stake matters to bondholders

A condition attached to the bond programme requires Zetrix AI to ensure that Wong does not dispose of shares in a way that causes him to cease being its single largest shareholder without bondholder consent. Such a condition, called a covenant, is a contractual commitment designed to protect lenders.

Wong's combined direct and indirect stake fell from 29.955% on July 27 to about 6.4% by the Tuesday referenced in the suspension reports. That is a decline of approximately 23.6 percentage points, or about 79% of the earlier percentage holding. He nevertheless remained the company's largest shareholder.

The covenant concerns his position relative to other shareholders, rather than a minimum percentage stated in the reports. His shrinking stake therefore reduces the buffer protecting that position, but the decline alone does not establish that the condition has been breached.

An earlier disclosure put Wong's stake at 8.245% on October 8, after he sold 46.88 million shares at 7.5 sen each for approximately RM3.52 million. At that point, his direct holding was 4.898%, or 386.83 million shares, and his indirect holding through Asia Internet Holdings Sdn Bhd was 3.347%, or 264.31 million shares.

A preceding director-interest filing announced on October 7 recorded transactions on October 6. Wong disposed of 5,542,089 directly held shares and acquired the same number indirectly through Asia Internet Holdings Sdn Bhd at RM0.220 per share. He also disposed of 18,560,000 direct shares at RM0.080 each and 53,349,200 indirect shares at RM0.083 each. As of the October 7 notice, his direct holding stood at 453,708,314 shares, or 5.745%, and his indirect holding at 264,310,974 shares, or 3.347%. The percentages excluded 180,898,600 treasury shares. This filing establishes an earlier shareholding position; it does not substantiate the October 8 total or the later approximately 6.4% figure.

The October 8 and subsequent 6.4% figures describe different points in a continuing selloff, rather than necessarily conflicting accounts. Wong said the disposals were forced, not voluntary, and alleged possible collusion and price manipulation. Those allegations are not established findings.

Rating scrutiny and the wider share selloff

MARC Ratings placed Zetrix AI's rating on MARCWatch Developing after the sharp reduction in Wong's stake, which it attributed largely to margin calls. A margin call arises when a lender requires additional collateral or repayment after the value of pledged assets falls. Selling pledged shares can be one way to meet that demand.

In its original rating announcement, MARC Ratings specified that the action covered the AA-IS rating on Zetrix AI's Islamic Medium-Term Notes (IMTN) Programme of up to RM2.0 billion. It put Wong's stake at 12.1%, comprising 6.5% direct and 5.6% indirect interests, down from 30%. The agency said the reduction narrowed the buffer for compliance with the positive covenant requiring him to remain the group's single largest shareholder, and warned that a further reduction could lead to a covenant breach.

MARC Ratings was also assessing borrowings that had risen to RM2.2 billion at end-June 2026 from RM160.5 million in 2021, alongside cumulative development expenditure of RM3.7 billion, representing 56% of total assets. It said it would reassess the rating and take appropriate action as the selloff stabilised, and resolve the watch once it had greater clarity on shareholding stability and the earnings trajectory supporting debt coverage consistent with the current rating.

The rating watch adds scrutiny to the company's credit position, but it should not be treated as a declaration of default. The reported concern centres on the reduced buffer around the shareholder covenant. No missed payment on the notes was identified in the accounts of the suspension.

Zetrix AI had lost about 90% of its market value since late August and reached a 13 year low of 6.5 sen on October 5. On October 9, its shares closed at 8.5 sen, up one sen, or 13.33%, valuing the group at RM686.7 million. That daily rebound did not reverse the much larger decline.

The fall followed reports that subsidiary MyEG had its role as a collection agent for Malaysia's Road Transport Department (JPJ) suspended over RM314 million in arrears. That development forms part of the reported sequence behind the share price pressure. It does not, on its own, establish the payment status of Zetrix AI's bonds or quantify the damage to the funds.

Wong also reduced holdings in other listed businesses. He ceased to be a substantial shareholder of Cuscapi in September after disposing of about 103.6 million shares, representing nearly 11% of the company. A separate October filing recorded his exit as a substantial shareholder of Excel Force MSC after a disposal of 24.05 million shares on October 5. These sales show that the reductions extended beyond Zetrix AI.

What the bond yield signals

One RM215 million tranche, issued in March 2024, carries a coupon of 5.8%. Its reported yield rose to 5.97%, a difference of 0.17 percentage points, or 17 basis points. A basis point is one hundredth of a percentage point.

A coupon is the stated payment rate on a bond's face value. Yield measures the return implied by its market price and expected payments. When a bond's price falls while its contractual payments stay unchanged, its yield generally rises. The reported yield movement is consistent with selling pressure or investors demanding a higher return to hold the debt.

It is not enough to calculate a loss across the three funds. The reports do not provide transaction prices, the funds' purchase costs, their holdings in that particular tranche or updated portfolio valuations. The RM215 million figure is the size of the tranche, not a disclosed amount held by ARIM.

The roughly RM5 billion erased from Zetrix AI's stock market value is also separate from any loss on its bonds. Shares and bonds give investors different claims on a company. A sharp share price decline can increase concern about a borrower's finances or contractual obligations, but it cannot be transferred directly into a loss estimate for bondholders.

The sequence behind the suspension

The events stretch from the creation of the bond programme to the recent pressure on Wong's shareholding. The suspension report is dated October 13, 2026, placing the decision after the October disposals and rating scrutiny.

• November 2022: Zetrix AI launched its RM2 billion Islamic bond programme.
• March 2024: A RM215 million tranche was issued with a 5.8% coupon.
• Mid 2025: Issuance was increased from RM1 billion to RM2 billion.
• July 27: Wong's combined direct and indirect stake stood at 29.955%.
• Late August onward: The sharp share selloff began.
• October 5: Zetrix AI shares reached 6.5 sen, a 13 year low.
• October 8: Wong's stake fell to 8.245% after another disposal.
• October 13: ARIM announced the immediate suspension of dealings in the three funds. Wong's stake was reported at about 6.4%.

The sequence connects rising concern about the issuer with the fund restrictions. It does not prove that Zetrix AI alone caused the liquidity problem, because ARIM's suspension statement did not identify the affected investments.

No reopening date has been announced

ARIM said it was monitoring the affected investments and engaging with the issuer, the sukuk trustee and the respective fund trustees. Sukuk are Islamic financing instruments. The sukuk trustee represents holders under the financing arrangements, while the fund trustees provide oversight of the funds under their governing documents.

The manager said valuations would be assessed under applicable policies, fund documents and regulatory requirements. It also said the suspension would be reviewed regularly in consultation with the fund trustees. No firm reopening date, review deadline or detailed timetable was announced.

ARIM set out how investors would be notified of changes:

Updates, including any extension or resumption of dealings, will be issued through official notices and ARIM’s authorised communication channels. We remain focused on responsible fund management, appropriate oversight and the interests of all unitholders.

The central unresolved issues are the funds' current liquidity, their revised investment valuations and the conditions needed to resume transactions. The size of redemption requests, available cash balances and any treatment of pending withdrawal instructions were not disclosed. Until those details are announced, neither the duration of the freeze nor its financial effect on individual investors can be calculated.

Key Points

• ARIM suspended subscriptions, redemptions and switches in ARSTF, ARSIF and ARUTF with immediate effect.
• The manager cited increased redemption requests and heightened credit risk, but did not name the affected investments in its suspension statement.
• The three funds' combined Zetrix AI bond holdings were reported at more than RM500 million and less than RM600 million.
• Wong's stake fell from 29.955% to about 6.4%, although he remained Zetrix AI's largest shareholder.
• MARC Ratings placed Zetrix AI on MARCWatch Developing amid concern about the shrinking shareholder covenant buffer.
• The suspension does not itself establish a default or a realised loss. No reopening date has been announced.